EU launches €1.5 billion programme for the development of the defence industries, including funding for Ukrainian drones, ammunition, and innovation

The European Commission has approved a €1.5 billion work programme under the European Defence Industry Programme (EDIP), aimed at strengthening the defence industries in the EU and Ukraine, increasing production capacities, and fostering innovation.

The programme envisages funding for joint projects, support for Ukraine’s defence industry, and the development of new opportunities for defence companies and start-ups.

Funding for production and support for Ukraine

Over €700 million will be directed towards scaling up the production of critical defence capabilities, including counter-drone systems, missiles, and ammunition.

Of this amount, €260 million is allocated under the Ukraine Support Instrument (USI) for the restoration and modernisation of Ukraine’s defence industrial base. These involve joint projects between Ukraine and EU member states, based on Ukraine’s current needs, enabling production to be scaled up simultaneously in both Ukraine and the EU.

Joint defence projects

€325 million will be allocated to implement European Defence Projects of Common Interest (EDPCI), supporting the development of large-scale collaborative defence industry projects.

In addition to EU member states, Ukraine and Norway are also eligible to participate.

Procurement and capability development

A further €240 million is allocated for the joint procurement of defence products by EU member states and Norway. This includes counter-drone systems, air and missile defence systems, as well as land and naval combat systems.

Support for start-ups and innovation

The programme places particular emphasis on innovation development and support for defence start-ups.

€100 million will be allocated for financial support to small and medium-sized enterprises via the FAST (Fund Accelerating Defence Supply Chains Transformation).

An additional €35.3 million has been allocated to the BraveTech EU programme. It is a joint grant programme for start-ups from Ukraine and EU member states, coordinated by the Brave1 defence technology cluster. The programme focuses on developing innovative solutions to meet the needs of the Security and Defence Forces.

Next steps

The first calls for proposals under the EDIP programme were published on 31 March 2026 on the European Commission’s portal. Calls for proposals under the Ukraine Support Instrument, specifically the Industrial Reinforcement Act, will open in June.